The EFQM (European Foundation for Quality Management) Excellence Model is a management framework for helping organisations in their drive towards excellence and increased competitiveness.
Within it, RADAR logic is a dynamic assessment framework and powerful management tool that provides a structured approach to questioning the performance of an organisation.
For bid evaluation, RADAR logic states that an organisation needs to set out:
The Results it is aiming to achieve
Refine the deployed approaches based on monitoring and analysis of the results achieved and ongoing learning activities.
The following shows how tenders are typically evaluated in line with EFQM/RADAR:
The most economically advantageous tender is the Bid which achieves the highest Final Score
The Final Score for each Bid is calculated as follows:
Final Score = P + (n x Q)
P = Net Present Value of Franchise Payments for the Core Franchise Term
Q = Quality Score expressed as a score out of 13
n = coefficient which adjusts the relative importance of Price and Quality
Price (NPV of Franchise Payments) is more influential in determining the Final Score
Source: East Midlands ITT, June 2018
Considerations in RADAR
When evaluating using RADAR, the following aspects are considered under each stage:
What are the objectives that the response addresses? e.g. increase in train services to increase revenue
How will they measure the successful achievement of these objectives?
What targets are set for these measures and what is the basis of these? e.g. improve revenue by ‘X’, increase performance to ‘Y%’
What comparative data will be use to measure progress towards objectives? e.g. benchmarking
What will the plan deliver to meet the objectives? e.g. leadership training, leadership performance review process
What does the plan include and not include?
How were the deliverables identified, including selection criteria?
What are the priorities for the various deliverables?
What are the benefits of the deliverables to stakeholders concerned? e.g. customers and employees
How does the plan objectives and deliverables specifically link to the ITT requirements and client’s strategy?
How does the plan objectives and deliverables support the values of the organisation and the client?
Who will be responsible for achievement of each objective and associated deliverable, and what will be his/her/their roles, responsibilities and accountabilities?
What are the key activities related to each deliverable?
What are the timescales for these activities? (start and finish, milestones)
What resources are required? e.g. finance, equipment, people, skills.
What constraints exist? e.g. existing process capacity, resources, regulations, laws, standards, deadlines.
What risks exist? e.g. overspend, unforeseen changes in external environment, lack of commitment internally, and how they will be addressed.
What communication needs exist and how they will be addressed?
Assessment and Refinement
What indicator measures will be used to measure progress with the plan? (Note: this is a direct link back to Results).
How will integrity of the measures used be assured?
How progress be reviewed, learning identified (internally and externally) and innovation be encouraged (e.g. in identifying and addressing ‘road blocks’ that might arise), corrective actions and making improvements?
Furthermore, when evaluating a tender, the evaluator is looking for the organisation to:
Add value to customers
Understand, anticipate and fulfil needs, expectations and opportunities
Create a sustainable future
Develop its organisational capability
Enhance capabilities by effectively managing change within and outside the organisation